New requests for NWF funding have worse chance than old ones - Dvorkovich
GORKI. April 3 (Interfax) - New requests for money from the National Welfare Fund (NWF) might be considered, but the limits for this funding have almost been used up and those requests will have a much lower chance of success than requests already made, Deputy Russian Prime Minister Arkady Dvorkovich told reporters.
Asked about a request by Independent Oil Company for NWF funds, he said "any requests should be considered in keeping with the established procedure."
"It's another matter which of them gets priority, given the limited NWF funding available. We're already close to exhausting the limit. So any new requests do of course have a far worse chance than those that are already in an advanced stage of consideration," he said.
Independent Petroleum Company (NNK), which is controlled by former Rosneft vice president Eduard Khudainatov, has submitted an application to the Energy Ministry for 78.1 billion rubles in financing from the NWF for the Paiyakha project, a spokesman for the ministry told Interfax o April 3.
The project includes the development of the Paiyakha and North Paiyakha oil fields on the Taimyr Peninsula in Krasnoyarsk Territory and the construction of the Tanalau oil terminal on the Yenisei River.
The Paiyakha and North Paiyakha fields have recoverable C1+C2 oil reserves of respectively 11.2 million tonnes and 95.5 million tonnes. The licenses to these fields were previously held by the Krasnoyarsk-based company Paiyakha, which was later bought by NNK.
A year ago NNK commissioned LenMorNIIProekt to develop the design and estimate documents for the construction of an oil terminal in Krasnoyarsk Territory that will be located on the Yenisei River, in an environment of permafrost and difficult ice conditions. The terminal with capacity to handle 3.8 million tonnes per year and potential for expansion to 5 million tonnes is intended to load oil onto tanker for shipment to Russian and foreign ports. The terminal will also be able to handle cargo needed to develop field infrastructure and tap oil and gas fields.
Khudainatov founded NNK in 2013. The company's main asset is Alliance Oil, which it bought from the Bazhayev family in 2014.
